Hi Micheal,
Yes, you can record automation while a section loops. Currently things like Latch or Write will punch out on every loop cycle, which may or may not be a good thing depending on what result you want, and Studio One doesn't currently do "Fills" for automation like filling the loop or range. But sure, if you put the instrument into Touch mode you can just let it loop as you tweak multiple different parameters along the way until you get what you want.